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The month of January is shaping up to be the coldest month for the lower US in a century, and the continued "Polar Vortex" cold blast is causing a tremendous increase in short term electricity and natural gas prices. Purchasing energy continues to be an endeavor in risk management. More than 6,000 chamber members have taken advantage of the ChamberChoice Energy Program and are being served by many various types of energy contracts (fixed, guaranteed savings, layering, pools).
Chamber members who are on a pool product, or any individual product that utilizes a portion of the energy supply from the short term markets (index) will undoubtedly receive a higher than normal bill for the January period. While it is never pleasant to receive a high energy bill, members who have been on such products over the past few years have enjoyed exceptionally low index prices and a blending down of their overall energy spend. As a matter of fact, about 10% of all large users of power in Pennsylvania have elected to stay on the utility POLR rates in order to receive all of their supply from the real time markets (large users only POLR option is real time hourly market pricing). While the index, or short term markets, generally outperforms long term fixed rates over time, in any given month extreme weather (heat in the summer or cold in the winter) can cause huge temporary spikes in energy costs.
In an effort to be proactive, OnDemand Energy wanted to alert Chamber Members as to the current short term market conditions as some members may experience higher than normal bills. In addition, there may be members, or large manufacturers in your community, that are remaining on the utility in order to receive all of their supply from the hourly market. There are ample products on the market that would allow such users to take some risk off the table during the heating and cooling seasons (such as the pool or individual layering products) while still fulfilling a majority of their supply needs from the index or hourly market.
We would ask that any members that may call about higher than normal bills simply be directed to their OnDemand consultant, if known, or to our 800 number (1-866-699-9968). Also if you know of any large users who are riding 100% of the utility hourly market, we would welcome a meeting to educate them on some better risk management options for purchasing power.
As always, we thank you for your support of the ChamberChoice Energy Program.
Sincerely,
OnDemand Energy
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